Quiz #3: Topic #9 - Managing the Product

Variations

1. cycle-recycle pattern 2. scalloped pattern

Stages & Strategies

1. preintroduction 2. introduction 3. growth 4. maturity 5. decline

Trickle-down

started on the runway (designer fashion shows) ex: capri pants, polo shirts, rugby shirts

Product Mix Strategies

strategies used to manage the product mix *expansion, contraction, alteration, positioning, trading up

Qualities Important for Successful Branding

successful means the brand will increase sale *must be promoted, output must consistent, product must be differentiated

Brand mark

symbol ex: Nike swoosh

Elements of Product Mix

terminology used to describe the products marketed by a business *product mix, product line, breadth, depth, trading up & trading down

product must be differentiated

the brand must stand for something

brand insistence

the consumer will buy only one brand

Depth (deep/shallow)

the number of products in a product line, deep means lots of products per line, shallow means fewer products per line

Trading Down

add a lower end product to the product mix

Expansion

add product lines to the product mix ex: when Target first added groceries

Trading Up

add a higher end (more expensive version) product to the mix

Brand

anything that lets the consumer know who the marketer of the product is

emulation

appeal is to reflect celebrities, fashion has gotten copied, available at boutiques and department stores RTW: ready to wear

distinctiveness

appeal of the fashion is its uniqueness, wearers of the fashion are trying o standout

Accepted Stages

brand recognition/brand awareness, brand preference, brand insistence

brand preference

brand the consumer would buy

Branding

brand, brand name, brand mark, trademark, copyright

Planned Styles Obsolescence

change the look or the style of the product, so the old style looks outdated ex: fashion

decline

clearance

growth

competition has entered the market, strategy - build secondary demand (secondary demand is demand for the brand)

output must be consistent

consumer expects the brand to be the same to be loyal

Positioning

define the products in terms of the competition (target marketing is defining the product in terms of the customer like a phone plan for families) positioning would be saying we have the least expensive phone plans

Planned Functional Obsolescence

deliberately make the product go obsolete so the business can sell the consumer another one

Planned Obsolescence

deliberately make the product go obsolete so the business can sell the consumer another one

Alteration

drop or add individual products

Contraction

drop product lines from the product mix ex: when Sara Lee dropped underwear

Product Mix

every product that the business markets

mass fashion

fashion is now in chains, widely knocked off much less expensive are available, RTW

preference test

find out if people like the brand name

The Model

graph of sales versus time, the origin is commercialization

Product Line

group of similar products and the product lines are part of the product mix

Adoption Patterns (for fashion)

how a fashion can become popular in a market 1. trickle-up 2. trickle-down 3. trickle-across

memory test

how easy is the brand name to remember

The Product Life Cycle

key tool for managing the product mix, model of how sales for a product change over time *the model, stages & strategies, variations

Trademark

legal protection for a brand, means no other business may use it without permission

Copyright

legal protection for a creative work, used in marketing to protect ads, slogans, package design, jingles

introduction

little or no competition, strategy - build primary demand (primary demand is demand for the product)

national

manufacturer or marketer owns the brand (trademark), like Pepsi, Nike, Martin's chips

brand recognition/awareness

means the consumer has heard of the brand

Recyclable Packaging

most packaging is recyclable

Types of Brands

national, private, generic

must be promoted

need to build brand awareness

Family Packaging

place different products in a similar package ex: Campbell's soup or Mrs. Paul's seafood, used to get consumers who like one product to identify and try the others, also bills recognition in the store

Multiple Packaging

place multiple units of the product in the same package ex: like a pack of soft drink, used to sell more of the product

Fashions

popular for a few seasons or years ex: yoga pants

Styles

popular for at least a decade ex: hoodies

Staples

popular for multiple generations ex: denim jeans

Fads

popular for only one season

Trickle-across

popular with all socio-economic classes at the same time ex: yoga pants

Trickle-up

popular with lower socio-economic classes first, street wear ex: hoodies and boyfriend jeans

preintroduction

product not yet for sale, strategy - test feasibility, product development

Returnable Packaging

refillable, used to be very common, but now less common because transportation is too expensive

cycle-recyle pattern

remarked by either cutting the price or a promotional push

scalloped pattern

remarker by finding a new use for the product

private

retailer owns the trademark, like Weis brand

Reuse Packaging

reused by the consumer ex: Welch's jams and jellies come in a drinking glass

maturity

sales have leveled off at a high level and the market has stabilized with weaker competitors leaving the market, products in this stage are cash cows because with a lot of money, strategy - maintenance marketing (defend market share)

decline

sales start to fall must determine if the product has a future, two strategies - if it has future then remarker, if it does not have a future then divest or harvest (harvest: continue to make the product but don't invest in it)

Breadth (wide/narrow)

the number of product lines in the product mix, wide means lots of product lines in the product mix, narrow means few product lines in the product mix

Fashion Lifecycle Stages

the same model as the product life cycle with different stage names 1. distinctiveness 2. emulation 3. mass fashion 4. decline

Brand name selection

to try to find out what type of product the brand reminds the consumer of *association test, learning test, memory test, preference test

learning test

try to find out how easy the brand name is to pronounce, important for word of mouth

association test

try to find out what type of product the brand reminds the consumer of

generic

unbranded, no trademark

Planned Material Obsolescence

use cheaper less durable inputs so the product would wear out more quickly ex: tires with thinner tread

Brand name

word ex: Nike